National Storage REIT (ASX: NSR)

Rise in Profit:National Storage REIT has reported for its underlying earnings growth of 57% in the year to June 30, 2017 to $45.7 million (against underlying earnings guidance of $49.5 - $52 million). Statutory profit has risen to $103.4 million from $44 million of prior year. The group’s result has got a boost from housing boom and growth in inner city apartment living. NSR has also expanded its portfolio to 116 centres worth $1.16 billion. More potential is expected from better portfolio occupancy and revenue per available metre. We give a “Speculative buy” at the current price of $ 1.54

Insurance Australia Group Ltd (ASX: IAG)

Mixed Bag of Result: Insurance Australia Group has witnessed a share price fall of about 7% on August 23, 2017 despite the group’s full-year net profit rise of 48.6% to $929 million over last year. IAG’s gross written premium (GWP) also rose 3.9% to $11.81 billion from last year’s figure of $11.37 billion. However, the revenue slipped by 1.6% while insurance profit edged up to $1.3 billion from $1.2 billion of FY16. On the other hand, the underlying insurance margin fell 2.1% at the back of higher claim costs in motor businesses in Australia and New Zealand, and losses in commercial classes. Further, IAG had risen its full-year 2017 natural peril allowance that also partly impacted the performance. Nevertheless, the group raised its full year ordinary dividend by 27%. We give a “Hold” recommendation at the current price of $ 6.22

Growth in GWP (Source: Company Reports) 

WorleyParsons Ltd (ASX: WOR)

Swinging to Profit: WorleyParsons’ stock moved up about 2% on August 23, 2017 while the group reported a 42.6% growth in net profit after tax of $33.5 million for the 12 months ended June 30, 2017. Diluted earnings per share rose 41.1%. Although the revenue slipped 33% to $5.2 billion and underlying profit after income tax fell to $123.2 million from previous year’s $153.1 million figure, EBIT was up 0.5%. The stock is trading close to its 52-week high price and we give a “Hold” recommendation at the current price of $ 12.72

Coca-Cola Amatil Ltd (ASX: CCL)

Low underlying profit result: Coca-Cola saw a dip in its share price by 2.9% on August 23, 2017 as the group posted its result that was impacted by Australian beverage business. Further, about $50 million have been booked in one-off restructuring costs in Australian beverages. This led to a 29.3% slip in net profit to $140.1 million and the underlying profit has fallen about 4%. While profit poured in from New Zealand & Fiji, Indonesia and Papua New Guinea and alcoholic beverages and coffee, earnings from Australian beverages pulled down the result. CCL still aims to achieve its mid-single-digit earnings per share growth as its medium-term target, and expects FY18 capex to be in line with that of FY17. Given the challenges impacting the stock performance,we maintain a “Hold” at the current price of $ 8.25

Vocus Group Ltd (ASX: VOC)

Earnings in line with guidance: Vocus Group Ltd has posted about $1.5 billion loss for the 12 months ended June 30, 2017 against the $64 million profit figure of last year while underlying profit rose 50%. The write-down of assets across its Australia and New Zealand businesses has impacted the result to some extent. However, earnings before interest, tax, depreciation and amortisation were reported to be in line with the guidance of between $365 million and $375 million.
 

Guidance (Source: Company Reports)
 
While there is increase in competition across its segments, VOC aims to work on its strategic priorities and expedite few projects. For instance, Vocus now plans to bring its Australia Singapore Cable live by July 2018, which is tracking ahead of schedule, instead of September 2018. We give a “Hold” at the current price of $ 2.64

McMillan Shakespeare (ASX: MMS)

Growth in Customers and Assets: McMillan Shakespeare has reported a full-year net profit drop of 17.7% to $67.902 million while there has been a 1.6% rise in revenue to $513.032 million and EBITDA is up 1%. MMS has also raised its fully franked dividend by 4.8% to 66 cents per share. MMS has reported for growth in customers and assets during the year and expects continued growth in retail financial services going forward. The stock was up 3% on August 23, 2017 and is trading at high levels. We give a “Hold” on the stock at the current price of $ 15.17

Impedimed Ltd (ASX: IPD)

Investments impacted Bottom Line: Medical technology company, ImpediMed, has reported a net loss of $27.6 million for FY17 against the last year figure of $26 million as loss while revenue moved up to $6.1 million from $5.9 million. Medical revenue was up 17% while oncology revenue surged 22%. The group’s performance took a hit from higher investments in relation to its medical device SOZO and the commercial launch of L-Dex. We give a “Hold” recommendation at the current price of $ 0.63

APA Group (ASX: APA)

Solid Result: APA Group enjoyed a 32% rise in its net profit after tax to $236.8 million for the year ended June 30, 2017 while revenue surged 14% to $1.88 billion. The group benefitted from full year contribution from DPS and Ethane pipeline, and EGP; and has announced new projects worth about $1.2 billion. APA now expects higher capital expenditure owing to the new projects while revenue is expected to flow from the projects from FY19.We give a “Hold” recommendation at the current price of $ 8.47

A2 Milk Company Ltd (ASX: A2M)

Bumper surge in Profit:A2 Milk Company’s full-year net profit rose 198% to $NZ90.65 million ($83.17 million) while revenue moved up 56%. The result came at the back of outstanding performance in infant formula, and continued growth in liquid milk. Primarily, rising demand for a2 Platinum baby formula in Australia and China boosted the result. At the same time, A2M has enhanced its marketing spend by $9.0 million at the back of building awareness. A2M has indicated for an on-market buyback of up to a $40 million over the next 12 months. The stock has risen 5.9% on August 23, 2017 and is trading at high levels. We give an “Expensive” recommendation at the current price of $ 4.81

    
Group Infant Formula Net Revenue (Source: Company Reports)
 
Isentia Group Ltd (ASX: ISD)

Impact from King Content business: Isentia has reported for FY17 revenue dip of 1% to $155.1 million and underlying net profit after tax and amortization slip of 24%. Group EBITDA also slipped 19% to $41.5 million. On the other hand, group’s client retention has remained strong. Reported revenue were up both in Australia/ New Zealand and Asia while there has been a dip in EBITDA. The content marketing segment reported a huge revenue drop and King Content brand has been discontinued. On the other hand, ISD’s gearing ratio of 1.25x is still said to be reflective of strong balance sheet. ISD now aims to focus on shareholder return and intends to reduce churn in ANZ, drive greater penetration of SaaS in Asia and implement operating efficiencies. The stock has plunged over 6% on August 23, 2017. Given the existing weakness in the stock, we put a “Hold” at the current price of $ 1.64

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